American Express PASS is a prepaid reloadable card for teens and young adults that helps teach money management skills. An adult must register for and add funds to the card and parents are able to monitor all aspects of the card’s use. PASS cards are used anywhere that American Express cards are used. The monthly fee has been waived until October 31, 2011.
How does a PASS card teach money management? Since the card holder is entrusted with the funds on the card, he or she is responsible for making buying decisions. They can choose to save money or spend it, buy full price or wait for a sale, withdraw money by using an ATM and paying a $1.50 fee or not paying that fee.
Budgeting is key when using an American Express PASS card. The teen or young adult card holder will be able to see their transactions online and set up text alerts for various reasons, for example when their funds reach a certain amount. A parent can choose to add funds automatically, end ATM withdrawals and close out the account if it’s warranted.
Money management is a skill that should be taught early in a child’s life. I began teaching my children when they were toddlers about money when we went shopping together. I showed them signs with prices and counted money aloud. As they began kindergarten and learned about coins, we talked about money and how it’s earned and what it’s spent on. The older they got, the more I taught. Giving money to charities, getting an allowance, paying for items at the dollar store they provided them with hands on learning. Showing them my checkbook, how to use an ATM machine and teaching them about paying bills was a later process.
My daughters each had their own bank account where they deposited and withdrew money as young as the age of 5. Now that my daughter is 11, she is able to decide to save money in her account, her piggy bank at home, or to spend it with my guidance. She always has money saved and has bought herself toys and books.
I’d feel totally comfortable giving her the use of an American Express PASS card when she turns 18. She has learned a great deal about money management already and knowing that I can have total access to her account makes it even more appealing.
I wrote this review while participating in a blog tour campaign by Mom Central Consulting on behalf of American Express and received a gift code to thank me for taking the time to participate.
